National Pension Hub Publications
Incorporating Water Risk Assessments in Institutional Investment Decisions: Challenges and Opportunities:
Challenges and Opportunities
Water risks relating to an abundance or shortage of water as well as water pollution are increasingly recognized as a serious problem by financial institutions and regulators. Portfolio firms not being able to operate at full capacity, banks having to write off non-performing mortgages and/or commercial loans, and insurers having to cover losses from floods and droughts are just some examples of how water risk affects financial institutions. Water risk research is still in its infancy and there are comparatively few academic articles and practitioner reports that address the subject area. The goal of this research project is to provide practical guidelines for institutional investors, risk managers, and insurance/bank professionals who are concerned about the potential effect water risk may have on the value and performance of their investment and/or loan portfolio as well as their expected insurance policy payouts.
Thomas Walker is a full professor of Finance at Concordia University. Prior to his academic career, Dr. Walker worked in the German consulting and industrial sector at such firms as Mercedes Benz, Utility Consultants International, and KPMG. His research interests are in sustainability & climate change, aviation, corporate governance, and risk management and he has published over sixty articles in these areas. In addition, Dr. Walker has published five books on sustainable financial systems, emerging risks, sustainable aviation, environmental policies, and sustainable real estate in the past two years. He previously served as Director/Co-Director of the David O’Brien Centre for Sustainable Enterprise, as Laurentian Bank Professor in Integrated Risk Management, as Chair of the Finance Department, and as Associate Dean, Research, at Concordia University.